Leeds Trade Union Council presents a no-cuts alternative budget for city

Iain Dalton, Leeds Socialist Party

The anti-austerity committee of Leeds Trade Union Council (TUC) - which brings together the city's unions - presented its alternative city budget at a special public meeting on 12 February.

If adopted, this budget would use reserves and borrowing to reverse all the Labour-run local authority's cuts to jobs and services, as well as reversing this year's fee and rent increases.

In contrast, this is the ninth cuts budget in a row proposed by Leeds Labour. For the last year, Leeds City Council has received no 'revenue support grant', part of £266 million cuts from central government.

But the council has not led any serious fight for the return of this stolen funding. It has instead passed on Tory cuts. Meanwhile it has sought partial replacement though local business tax growth from city centre development, trialling 100% business rate retention.

Even the council's own proposals admit that any "apparent growth in the economy has not translated into business rate growth; in fact the income from business rates available to the council declined from 2014-15 to 2016-17, only returning to 2014-15 levels in 2018-19."

With a £90.8 million projected budget gap up to 2021-22, the council will consider "stopping, delivering differently or charging for those services that are no longer affordable."

Leeds City Council is already spending reserves to support its budget, such as 'un-earmarking' the 'Early Leavers' Initiative' reserve, and making temporary use of the 'Section 106' money developers must pay. But this year it is actually putting an extra £4.5 million into reserves, following a large portion of a £7.3 million VAT rebate last year!

Leeds TUC identified £6.63 million of cuts to jobs and services, and increases to rents and fees, in this year's budget. This is out of a larger budget gap partially plugged by reserves, as well as cost-saving capital investments like upgrading to LED street lamps.

Important among the council's attacks is an inflation-busting 4.3% rent hike for tenants of council homes built on profit-sucking 'private finance initiative' schemes - while other council tenants receive 1% rent cuts. The council is also pushing for 'efficiencies' in various departments, including leisure and libraries.

As well as scrapping these attacks, Leeds TUC's alternative budget proposes additional spending. This includes reversing the £230,000 cuts to domestic violence services fought by the Women's Lives Matter campaign.

The alternative budget incorporates demands from the Leeds Labour Representation Committee, a Labour left group, like ending the use of bailiffs to chase council tax arrears. And it calls for the council to pay outsourced workers the same as in-house workers, as demanded by the Leeds branch of public service union Unison.

But the key to the alternative budget is not simply passing on no cuts this year, but mobilising trade unions and community campaigns to demand the return of all funding stolen from our city. We also demand that Shadow Chancellor John McDonnell pledge an incoming Labour government will reimburse councils who use reserves and borrowing to set no-cuts budgets.

Donate to the Socialist Party

Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.

When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.

Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.

We therefore urgently appeal to all our viewers to donate to our special coronavirus appeal.